ABSTRACT
The chapter is concerned primarily with two things: first, the relationship between the transport sector and the advantages to be gained from different arrangements of land uses; second, the use of policies towards the arrangement of land uses designed to reduce external costs resulting from commercial and industrial activities. A characteristic of many kinds of land use, except in the smallest towns, is that they occur in more than one location. A single employment centre requires everyone to commute to that centre. Using a London example, the chapter concludes by assessing the case for using fiscal measures in order to correct for these externalities. One important implication of this analysis when comparing the merits of alternative spatial policies is this: that, if the level of user demand varies, it is not correct to make a simple comparison between transport costs.
